An “Invincible” fund that goes wild – Invictus means in Latin unbreakable, insurmountable, even untouchable. The word inspired the famous poem of the same name by the Englishman William Ermest Henley. And this text, symbolizing endurance in the face of life’s trials, was a favorite of Nelson Mandela. Ironically: to financial problems of the South African hedge fund Invictus Capital refer to the fragility of the crypto lending sector still affected by the aftershocks of Luna’s fall and its home stablecoin. “I am the master of my own destiny”, said the poet. But that was before $1 million in debt.
Invictus Capital finally landed for $1 million
October 30 was the deadline for his refund READY. AND Invictus Capital has not repaid its debt contracted with the decentralized credit protocol TrueFi. Expressed in Binance USD and amounts to1 million dollars, she had been competing since May 3. As a reminder, the uniqueness of the TrueFi protocol isAbsence of collateralthat is, the borrower does not pledge anything against the funds.
Invictus Capital is affiliated with the company New World Holdings based in the Cayman Islands and declared in voluntary liquidation during last summer. Why such an approach? Because all funds related to the parent company held large amounts of UST – the stablecoin of the Terra blockchain – which were partially deposited on the platform Celsius network. And it all went up in smoke within weeks.
Decentralized unsecured lending protocols have been called into question
Beyond the Terra issue, which has been extensively covered in our columns, what questions here is the principle itself non-refundable loan. Basing a loan on the trust and good financial health of a group right now seems like a good idea on paper. But when things go wrong, there’s really no plan B.
Besides, this is not not the first time than the protocol TrueFi faced with this kind of situation. Last month it was the Korean company Block water which lacked one over $3 million in debt. Of course, this principle of lending, which is widespread in finance traditional, struggles to apply in the more volatile cryptocurrency market. MapleFinanceanother protocol of the same type had to change the terms of the loan afterwards 10 million slate left by Babel Finance.
TrueFi has not communicated yet on the case Invictus Capital which is not yet under a formal notice of default. Meanwhile, the mention of the Terra issue should remind us that the cryptocurrency ecosystem is young and sometimes still immature, and that the refreshing enthusiasm of its community sometimes needs to be channeled through the wisdom and experience of industry veterans. . “Bruised by this existence, I am standing even though wounded”wrote author Invictus, and it perfectly echoes the crypto misadventures of our friend Rektosaurus more precisely… Terra (LUNA).
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